Systems and Methods for Providing a Combination Financial Product

Abstract

The present invention relates to systems and methods for administering combination annuity products and to combination annuity products themselves. Certain embodiments of the invention can be used in connection with variable universal life insurance and variable life insurance contracts.

1 . A method for administering a combination annuity product, the method comprising:
 receiving at least one premium payment associated with a combination annuity product;   allocating a specified portion of the payment to a fixed account and allocating a specified portion of the payment to a variable sub-account to determine a fixed account/variable sub-account allocation; and,   guaranteeing principal protection for a specified portion of principal associated with the combination annuity product.   
     
     
         2 . The method according to  claim 1  wherein said guaranteeing principal protection includes:
 guaranteeing a minimum rate on the fixed account allocation; 
 guaranteeing at the end of a given period that the variable sub-account will not be less than a specific percentage of the original amount allocated to it; and, 
 determining the fixed account/variable sub-account allocation based on a specified sub-account protection percentage, a specified fixed account growth rate and a specified benefit period. 
 
     
     
         3 . A combination annuity product produced by a process comprising:
 receiving at least one premium payment associated with a combination annuity product;   allocating a specified portion of the payment to a fixed account and allocating a specified portion of the payment to a variable sub-account to determine a fixed account/variable sub-account allocation; and,   guaranteeing principal protection for a specified portion of principal associated with the combination annuity product.   
     
     
         4 . The product produced by a process according to  claim 3  wherein said guaranteeing principal protection includes:
 guaranteeing a minimum rate on the fixed account allocation; 
 guaranteeing at the end of a given period that the variable sub-account will not be less than a specific percentage of the original amount allocated to it; and 
 determining the fixed account/variable sub-account allocation based on a specified sub-account protection percentage, a specified fixed account growth rate and a specified benefit period. 
 
     
     
         5 . A system for administering a combination annuity product, the system comprising:
 receiving means for receiving data indicating payment of at least one premium payment associated with a combination annuity product;   allocating means in communication with the receiving means, the allocating means for allocating a specified portion of the payment to a fixed account and allocating a specified portion of the payment to a sub-account to determine a fixed account/variable sub-account allocation; and,   guaranteeing means in communication with the allocation means, the guaranteeing means for guaranteeing principal protection for a specified portion of principal associated with the combination annuity product.   
     
     
         6 . The system according to  claim 5  wherein said guaranteeing means guarantees said principal protection by:
 guaranteeing a minimum rate on the fixed account allocation; 
 guaranteeing at the end of a given period that the variable sub-account will not be less than a specific percentage of the original amount allocated to it; and, 
 determining the fixed account/variable sub-account allocation based on a specified sub-account protection percentage, a specified fixed account growth rate and a specified benefit period.